Be aware of transaction fees when giving as people in Colorado look to help California
Jan 10, 2025
As more and more people continue to lose their homes in southern California, many in Colorado will likely try to help through online donations.On top of being aware of potential online scams, legitimate organizations with a strong track record of helping people do have processing fees those giving should be aware of. News5 sat down with the CEO and Executive Director of the Better Business Bureau (BBB) of Southern Colorado to discuss the matter."When you're talking about these donation pages... they want to make it easy for you, and so you know that typically means we're going to pick your credit card," Liebert explained. While Liebert says these fees are just the cost of doing business or giving, some organizations are more transparent than others."There will be some that will be very upfront that will say, okay, so you wanted to give $100 well, we're gonna have to have this charge. Would you like to round up the $4 or $5 to make your gift a full $100 you're paying $106," Liebert added. "They might tell you when you're checking out. It could tell you before you check out. Some aren't gonna tell you anything. And then later on, you you look at your credit card and, wait a second, I only gave a donation of this. So you want to be making sure that you're aware of that stuff."Liebert reiterated, that doing your own research is an important part of giving. Be aware of how much money is going to the organization and what the organization is doing with that money. Liebert recommended the public utilize Give.org as a resource to check on many charities. To give some examples of transaction fees for legitimate organizations:GoFundMe's fee policy is 30 cents per donation plus a charge of 2.9% for what was given.-They require a minimum donation of $5-If you give $50 to GoFundMe, about $1.75, or approximately 3% of your donation is used to handle fees.-The highest possible transaction fee on GoFundMe is 8.9% if you donate $5.-The fees are not charged to the donor, but deducted from the donation.-GoFundMe has created a centralized hub of donation pages they have verified, click here to give.Some organizations give you the option to cover the transaction fee.The California Fire Foundation, a non-profit, has a donation page for Wildfire and Disaster Relief and to support the families of fallen firefighters.-If you give a dollar to the California Fire Foundation, about 24 cents or 24% of your donation is used to handle fees.-If you give $50 to the California Fire Foundation, about $1.69 or approximately 3% is used to handle fees.-Click here to give to the California Fire Foundation.Scripps News and non-profit the Howard Foundation also have a donation page to help tied to the California wildfires.-The minimum donation for the Howard Foundation is $10-If you give $50 to the Howard Foundation, they give you the option of adding $2.50, or 5% to handle fees.-Click here to give to the Howard Foundation to provide relief for the wildfires in southern California.You may also benefit by giving when it comes to taxes, and Colorado is one of a few states where you can take advantage. Click here for more on claiming charitable giving on your state taxes in the Centennial State. Liebert also spoke in depth about being aware of charity scams, click here for more on that topic. Editor's Note: GoFundMe does have a non-profit wing, GoFundMe.org, however the company itself is not a non-profit. Originally, this article stated GoFundMe was a non-profit.____Watch KOAA News5 on your time, anytime with our free streaming app available for your Roku, FireTV, AppleTV and Android TV. Just search KOAA News5, download and start watching.